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Asked by Ray, Corona, CA Mon Mar 4, 2013

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Answers

9
Lydia Kray, Agent, Corona, CA
Mon Mar 4, 2013
The market has changed and it is now become a sellers market. It doesn't make sense to prequalify right now as you have to wait to purchase in Nov. Maybe prequalify in Aug at the earliest.


Lydia Kray
Realty One Group
cell 951-733-1058
http://www.LydiaKray.com
1 vote
I understand. but my question is can I put 10% down payment?
Flag Mon Mar 4, 2013
Thomas Jandt, Agent, Corona, CA
Mon Mar 4, 2013
Hi Nuris, I see various knowledgeable agents have responded here to answer your primary question, however, I'd like to make a quick comment that might help protect you going forward based on your concern of paying too much for a house and feeling a sense of urgency right now.

Even if you get financing lined up, which I'm confident any of us here on this blog post can as long as you fall within the lender guidelines; you should be advised that there is limited inventory of available homes in Corona that can be readily bought at a fair price.

Sadly, the limited number of homes that are currently listed are being marketed at prices 10% to 15% of fair market value is most cases, at least when based on any recent comps. This poses a serious issue to many home buyers that are reliant on lender financing because if the appraisal comes in lower than the agreed sales price, the buyer has to come up with the additional cash to close. If you only have 10% available to put down, but the value is 10% less than offered, it would double your down payment requirement.

I understand that you're anxious to buy again and hopefully you will have plenty of time to do so in the coming years, so I wouldn't recommend forcing the issue right now.

In my opinion, I believe you should be patient, save up some more money until you get 20% (much better financing terms) and buy when the market isn't so lopsided in favor of the seller. I have several buyers seeking homes right now and, although we search for new homes every day, we're planning on being patient to make sure we buy the home they want, not the only thing available at the moment.

Deals do come up in the distressed market (short sales and foreclosures) where you have a shot at a good deal on a home that is priced right, but you need to find an agent that really works hard to find these opportunities and understands the process.

Investors, not traditional home buyers, are driving up prices. They have a specific price point they won't exceed in order to generate the appropriate cash on cash return, so prices won't get driven up too much higher than they are now because the ROI wouldn't meet their investment guidelines

If you need any help or have any questions in this regard, feel free to contact me. I'd be happy to help get you Pre-Qualified for a loan now and begin the process of locating an opportunity.

Best regards,

Thomas Jandt
REALTOR & Short Sale Certified Agent
Hilton Thomas & Associates, Inc.
http://www.hiltonthomas.com
P. 1-866-766-1112
tom@hiltonthomas.com
DRE License #01869845
1 vote
Thank you for your answer. I think your advice is perfect. I know there is not too many houses for sale right now. hopefully by mid of next year we will have 20% down or even wait till 2014 and put 3.5% down payment. hopefully houses won't go up more! otherwise we will be screwed and will be paying $1900 a month for the next 10 years.
Thanks again...
Flag Mon Mar 4, 2013
Craig Chasta…, Agent, Rancho Cucamonga, CA
Mon Mar 4, 2013
Hi Nuris,

Based on my experience you will have to wait until November of this year to qualify for a standard conforming loan. The only other option that I know of would be private financing and typically they want a minimum of 30% down.

If you have any further questions please feel free to give me a call.

Craig Chastain
Realtor/Owner
Next Level Realty
909.243.4251
1 vote
Thank you Craig
Flag Mon Mar 4, 2013
We don't have 30% down and we don't want to go with private loan
! we only have 10% and hopefully will save up 15% by October 2013
Flag Mon Mar 4, 2013
Patti Kane, Home Buyer, Boulder, CO
Sun May 12, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
0 votes
Ray, Renter, Corona, CA
Mon Mar 4, 2013
Houses are going up in price! I don't want to end up buying a 400,000 house! and go to square 1 again!
0 votes
miguel guzman, Agent, corona, CA
Mon Mar 4, 2013
Hi Nuris. I got several emails from you and i think they are all referring to the same question. the answer for it is YES. I can provide both services, the loan and the realty side.

the loan needs to be an FHA loan, that is the only loan that will allow you to purchase after 2 years out of short sale. 3.5% down. this is the best loan you can get unless you have 20% down or more.

If your 2 year is due on November, we need to start working on it by the end of September beginning of October.

I'll be happy to work with you guys and help you purchase your next home.
if you have any other questions do please contact me.

Miguel Guzman
cell-951-254-1011
fax-951-493-7900
isellieocla@gmail.com
http://www.isellieocla.com
0 votes
, ,
Mon Mar 4, 2013
For FHA financing, If you were current before the short sale it is allowed after 12 months, however if you were in default than it must be 3 years. Fannie Mae allows new purchase after 2 years but you must have 20% down payment. Fannie allows 90% financing after 4 years.


Here are the FHA guidelines for purchasing after short sale that you might find useful:
When a previously owned property was sold for less than what was owed (short sale), borrowers are considered eligible for a FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale.

Borrowers that were in default at the time of the short sale (or pre-foreclosure sale) are not eligible for three years from the date of the sale.

Borrowers who sold their property under the FHA pre-foreclosure sale program are not eligible for three years from the date that FHA paid the claim associated with the pre-foreclosure sale.

Lenders may make exceptions for borrowers in default at the time of short sale if
• The default was due to circumstances beyond the borrower’s control (such as death of a primary wage earner, long term uninsured illness, etc.); and
• The credit report reflects satisfactory credit prior to the circumstances (beyond the borrower’s control) that caused the default.
0 votes
We had to short sale for two reasons.
1- I got laid of from my work back in 2008. of course I was helping my husband with the house payment and we were doing fine. then I got pregnant and had a baby in 2009. we were falling down on our payments and my husband couldn't continue on payments because I can't go back to work due to our son condition.
Flag Mon Mar 4, 2013
Jory Blake, Agent, Corona, CA
Mon Mar 4, 2013
Hi Nuris, you'll probably get flooded with answers on this.

The current waiting time for obtaining a loan after short sale is 3 years from the recording date.

I say this from experience as I have 2 buyers in escrow who had previous short sales.

It is a great time to start working with a lender to be in top shape when the time comes ( 11/1/2014)

The only other option is seller-finance, but that is rare at the moment

Jory Blake
951.742.3751
Web Reference:  http://www.JoryBlake.com
0 votes
Craig Chasta…, Agent, Rancho Cucamonga, CA
Mon Mar 4, 2013
Hi Nuris,

Based on my experience you will have to wait until November of this year to qualify for a standard conforming loan. The only other option that I know of would be private financing and typically they want a minimum of 30% down.

If you have any further questions please feel free to give me a call.

Craig Chastain
Realtor/Owner
Next Level Realty
909.243.4251
0 votes
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